The company's expansion strategy seems to be working but high research expenses impede its growth.
On February 24, Cambricon released its annual performance data for 2020. The net loss in 2020 is CNY 436 million. Compared with CNY 1.18 billion in the same period of last year, its losses are narrowed. Its revenue reaches CNY 459 million, up 3.4% year-on-year. Affected by the environment in the first half of 2020, the company's computer room construction projects are slowed down, which badly affects its business. With the recovery of the economy in the second half of the year, the project progress of downstream customers returned to normal. The company has been focusing on market expansion in the second half of 2020 and achieved a small increase in annual revenue on a year-over-year basis.
However, in order to upgrade the company products and the supporting platform, the company continued to increase the research expense in 2020, which increases significantly compared with the same period of last year. This is the main reason for its limited growth.
In addition, during the reporting period, the company's income from government subsidies and idle funds increased by about CNY 95.64 million year-over-year. The amount of share-based payment decreased by CNY 934 million over the same period of last year.